Use the Following Information for the Next 4 Questions

question 75

Multiple Choice

Use the following information for the next 4 questions.
Tong, Inc. is a manufacturing company that uses a process costing system. All direct material is added at the start of the process, and spoilage is discovered at the end. During the first period of operations 15,000 units of material were placed into production at a cost of $20 each (ignore conversion costs for this process) . Ending work in process was 2,000 units, good units completed totaled 11,000 units, and normal spoilage is 15% of the units surviving inspection. Inspection takes place after the units are completed.
-The unit cost assigned to the abnormal spoilage is

• A) $-0-
• B) $22.61
• C) $20.00
• D) $24.00

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Definitions:

Goodwill

An intangible asset that represents the value of a business's reputation, brand, and customer relationships.

Apologize

The act of expressing remorse or regret for one's actions or words, often aiming to mend or improve a relationship.

Problem

A situation, question, or issue that presents difficulty, uncertainty, or challenge, requiring thought or action for resolution.

Telecommute

The practice of working remotely, typically from home, leveraging digital communication tools to perform one's job outside the traditional office environment.